TCS to pay ₹9.3cr monthly for new Bengaluru office space
What's the story
Tata Consultancy Services (TCS) has signed a major lease for 1.4 million square feet of office space at 360 Business Park in Bengaluru's Electronic City. The deal is one of the largest office transactions in the city in recent years. The leased space spans across Towers 5A and 5B with areas of 680,000 sq ft and 720,000 sq ft, respectively. TCS has agreed to pay a monthly rent of ₹9.31 crore at ₹66.5 per sq. ft. for this space.
Lease details
Total outlay for new office space estimated at ₹2,130 crore
The lease agreement with Labzone Electronics City Pvt. Ltd. is divided into two phases. The first phase, covering the ground and seven floors, will start on April 1, 2026. The second phase, covering eight to the 13th floor, will begin on August 1 of the same year. The total outlay for TCS's new office space in Bengaluru is estimated at ₹2,130 crore. This includes a security deposit of ₹112 crore and a 12% escalation every three years.
Nationwide growth
TCS's expansion plan in Bengaluru
In June, it was reported that TCS had set aside over ₹4,500 crore for new campuses and office space leasing as part of a major expansion plan across India. In Bengaluru alone, apart from the latest lease deal, TCS had also acquired 1.4-1.6 million sq. ft. from Sattva—Darshita Southern India Happy Homes for ₹2,250 crore and another 3.2 million sq. ft. from TRIL for ₹1,625 crore.
Regional growth
TCS's expansion in smaller cities and other locations
TCS is also expanding its footprint in smaller cities. The company has leased additional office spaces in Coimbatore and Hyderabad. In Visakhapatnam, it secured 21.6 acres on a 99-year lease from the state government as part of its 2024 rollout plan. In Kochi, TCS bought 37 acres in the Kinfra Electronics Manufacturing Cluster for ₹690 crore.